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BlackRock, the world’s largest asset manager, has reinforced its bullish stance on Bitcoin, recommending that investors allocate 1%-2% of their portfolios to the digital asset to enhance diversification and potentially improve long-term returns.
In guidance shared with financial advisors and investors on Tuesday, BlackRock argued that Bitcoin’s distinct characteristics make it a valuable complement to traditional assets such as stocks and bonds.
The firm said that Bitcoin’s limited supply and historically low correlation with conventional markets could help strengthen portfolio performance without significantly increasing overall risk.
“Bitcoin’s role in a portfolio is evolving and it may be seen as a complementary, diversified investment asset,” BlackRock tweeted. “We believe that a moderate allocation (generally around 1-2%) can contribute to improving portfolio returns while maintaining risk tolerance.”
According to Michael Gates, who leads model portfolio strategy at BlackRock, investors do not need large Bitcoin positions to benefit from the asset.
 
He explained that “even a modest allocation can influence portfolio returns without dominating daily risk,” suggesting that Bitcoin can serve as a structural diversification tool rather than merely a speculative bet.
Notably, the recommendation carries significant weight given BlackRock’s influence in global financial markets. With more than $10 trillion in assets under management, the firm’s views are closely watched by institutional investors worldwide.
BlackRock’s recommendation comes as its flagship spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), continues to dominate the market.
Launched in January 2024, IBIT has grown into the world’s largest spot Bitcoin exchange-traded fund, managing more than $45 billion in assets as of this reporting.
The ETF gives investors exposure to Bitcoin through traditional brokerage accounts, eliminating many of the operational hurdles associated with self-custody and crypto-native platforms.
The firm’s expanding lineup of digital asset products also includes BITA, an income-generating Bitcoin ETF introduced earlier this month.
Analysts say the combination of BlackRock’s allocation guidance and investment products lowers barriers for pensions, family offices, and wealth managers seeking Bitcoin exposure.
Despite its long-term optimism, BlackRock acknowledged that Bitcoin could face short-term pressure as capital continues to flow aggressively into artificial intelligence-related equities.
The firm noted that strong investor demand for AI companies may temporarily divert funds away from alternative assets such as Bitcoin and gold.
Nevertheless, BlackRock emphasized that these shifts are cyclical and unlikely to derail the broader institutional adoption trend.
Robbie Mitchnick, BlackRock’s head of digital assets, recently described Bitcoin as an emerging global monetary alternative.
Speaking in a recent interview with InvestmentNews TV, the pundit said Bitcoin is increasingly viewed as “digital gold” and a potential hedge amid geopolitical uncertainty, rising government debt, and persistent macroeconomic risks.
He added that BlackRock generally sees modest allocations as the most appropriate approach for most investors, noting that small positions have historically helped portfolios outperform while preventing volatility from becoming overwhelming.
At press time, BTC was trading at $59,425, reflecting a 0.22% drop in the past 24 hours.